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Economy of Western Sahara

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Revision as of 11:11, 15 March 2025 by imported>MediaKyle (Adding local short description: "Economy of a territory in northwestern Africa", overriding Wikidata description "economy of the country")
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File:Bou Craa mine.jpg
Bou Craa phosphate mine 100 kilometers (about 60 miles) from the coastal city of El Aaiún, Western Sahara. Two Landsat images show growth of the mine between 1987 and 2000.

The majority of the territory of Western Sahara is currently administered by the Kingdom of Morocco. As such, the majority of the economic activity of Western Sahara happens in the framework of the economy of Morocco.

In the Moroccan-administered territory, fishing and phosphate mining are the principal sources of income for the population.<ref name=CIA/> The territory lacks sufficient rainfall for sustainable agricultural production;<ref>Template:Cite web</ref> hence, most of the food for the urban population must be imported. Trade and other economic activities are controlled by the Moroccan government.<ref name=CIA/>

The Free Zone (POLISARIO-administered territory) is mainly uninhabited. There is practically no economical infrastructure and the main activity is camel herding nomadism. The government-in-exile of the Polisario Front had also signed contracts for oil exploration,<ref>Template:Cite web</ref> but there is no practical work, because the zones given are in the Moroccan-controlled part of the territory.Template:Citation needed

Key agricultural products from Western Sahara include fruits and vegetables (grown in the few oases), as well as camels, sheep and goats. Fishing and oil exploration contracts concerning Western Sahara are sources of political tension.<ref name=BBC1/><ref name=BBC2/><ref name=Harris/>

Energy consumption

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Disputes over natural resources

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Fishing and oil exploration contracts concerning Western Sahara are sources of political tension.<ref name=BBC1>"The Battle for West Africa's Fish". BBC News. 1 August 2001. Accessed 27 April 2018.</ref><ref name=BBC2>Lewis, Aidan. "Morocco's fish fight: High stakes over Western Sahara". BBC News. 15 December 2011. Accessed 27 April 2018.</ref><ref name=Harris>Harris, Bryant. "U.S. Oil Firm Creates Tension over Western Sahara". Inter Press Service. 11 May 2014. Accessed 27 April 2018.</ref> In 2015, a European court invalidated a trade deal between the European Union (EU) and Morocco that involved Western Sahara, prompting a diplomatic backlash from Morocco.<ref>Dudley, Dominic. "Morocco Steps Up Diplomatic Pressure On US And Europe Over Western Sahara Occupation". Forbes. 19 May 2016. Accessed 27 April 2018.</ref> In 2018, the European Court of Justice ruled that a fishing treaty between the EU and the Moroccan government did not include fishing grounds off the coast of Western Sahara.<ref>Dudley, Dominic. "European Court Rules Against Morocco Again, Barring Western Sahara's Waters From EU Fisheries Deal". Forbes. 27 February 2018. Accessed 27 April 2018.</ref> In April 2010, the Norwegian state-owned salmon company EWOS stopped the purchases of fish oil from Western Sahara and Morocco (with an amount of around 10 million euros annually, and estimated between 12,000 and 20,000 tons of fish oil in total),<ref>Template:Cite news</ref> for "not being in line with the Norwegian authorities' recommendations".<ref>Template:Cite news</ref>

In 2002, the petroleum companies TotalEnergies and Kerr-McGee were awarded contracts to explore for oil in the region.<ref name=Harris/> In December 2004, French oil company TotalEnergies decided not to renew their license off Western Sahara.<ref>Template:Cite news</ref> In May 2006, Kerr-McGee decided to not renew the contract signed with the Moroccan Authorities.<ref>Template:Cite news</ref> The US-based firm Kosmos Energy began a contract to explore offshore from Western Sahara in 2013, prompting criticism from activist groups such as Western Sahara Resource Watch.<ref name=Harris/> Desertec, a Munich-based solar energy company, declined to place a plant in Western Sahara for "reputational reasons."<ref>Template:Cite news</ref>

See also

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References

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